South China Holdings CoHKSE:00413 Gross Margin % is 7.54% as of Dec. 2025, which is 49% below its 10-year median of 14.71. The stock has 3 warning signs investors should review. Among 790 Travel & Leisure companies, South China Holdings Co ranks worse than 95.7% on this metric.
HKSE:00413's Gross Margin % is ranked worse than 95.7% of 790
companies
in the Travel & Leisure industry
Industry Median: 44.09
vs HKSE:00413: 7.33
South China Holdings Co had a gross margin of 7.54% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for South China Holdings Co was -5.50% per year.
South China Holdings Co (HKSE:00413) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
South China Holdings Co had a gross margin of 7.54% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
South China Holdings Co Gross Margin % Related Terms
South China Holdings Co Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HKSE:00413 vs AS, HAS, LTH: Gross Margin % Comparison
For the Leisure subindustry, South China Holdings Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
South China Holdings Co Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, South China Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where South China Holdings Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
South China Holdings Co (HKSE:00413) has a Gross Margin % of 7.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on South China Holdings Co and its competitors. This is 49% below median its historical median of 14.71. Over the past decade, South China Holdings Co's Gross Margin % has ranged from 7.33 to 19.03. According to the industry distribution chart, South China Holdings Co ranks #756 out of 790 companies in the Travel & Leisure industry, placing it in the top 95.7%.
Is South China Holdings Co's Gross Margin % too high?
South China Holdings Co's current Gross Margin % of 7.54% is 49% below median its 10-year median of 14.71. Over the past 10 years, this metric has ranged from a low of 7.33 to a high of 19.03. The Travel & Leisure industry median Gross Margin % is 44.09. South China Holdings Co's value of 7.54% is 82.9% below this industry median. Based on the distribution chart, South China Holdings Co ranks #756 out of 790 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers.
How does South China Holdings Co's Gross Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, South China Holdings Co ranks #756 out of 790 companies for Gross Margin %. This places South China Holdings Co in the lower half of its industry. The industry median Gross Margin % is 44.09. South China Holdings Co's value of 7.54% is 82.9% below this benchmark. Historically, South China Holdings Co's own Gross Margin % has ranged from 7.33 to 19.03 over the past decade. While the company's 10-year median is 14.71 vs. the industry median of 44.09, South China Holdings Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.09, based on 790 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South China Holdings Co's current Gross Margin % of 7.54% is 82.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on South China Holdings Co and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South China Holdings Co's current Gross Margin % is 7.54%, which is 49% below median its own 10-year median of 14.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South China Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, South China Holdings Co (HKSE:00413) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.02, compared to a current price of HK$0.03 — trading 30% above its estimated fair value. The current Gross Margin % is 7.54%, which is 49% below median its 10-year median of 14.71 and 82.9% below the Travel & Leisure industry median of 44.09. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For South China Holdings Co (HKSE:00413), the current Gross Margin % is 7.54% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
South China Holdings Co Ltd is a trading and manufacturing company. The company operates its business through four segments, namely Trading and Manufacturing, Property investment and development, Agriculture and forestry, and the Others segment. Its business activities include trading and manufacturing toys, footwear, and leather products, as well as cultivating fruit trees and rearing livestock and aquatic products. It is also engaged in developing properties and investment holding with management functions. The majority of the company's revenues are derived from the Trading and Manufacturing segment. Its geographical segments are the United States of America, Europe, the PRC, including Hong Kong, Japan, and Others. It derives maximum revenue from the USA.
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